Advertising drives economic growth

In helping companies succeed, advertising plays a key role in a dynamic economy. Successful companies create more jobs, pay more tax and contribute directly to economic growth.

In fact, there is a proven link between advertising and economic growth1:

  • There is a positive correlation between the rates of investment in advertising and GDP growth in major markets.
  • Business sectors with the highest rates of investment in advertising are those where competition, a recognized driver of growth, is liveliest.
  • Countries where relatively little is invested in advertising are also those where economic growth is weakest.

The advertising industry itself also contributes in a big way to economic growth. At 6.4% in 2007, the communications industry was the third-fastest growing sector of the US economy far above the 2.2% growth for the economy as a whole2.

1WFA, Advertising and Economic Growth
2Veronis Suhler Stevenson, Communications Industry Forecast 2007-2011; Economist Intelligence Unit